"Established in 1992 with a capacity of 3, 400 tpa by Abhay Lodha, Gujarat Foils (GFL) is a part of the $1billion Topworth Group, and is the third largest manufacturer of aluminium foils and sheets in India. Topworth group has presence in packaging, steel, steel pipes and tubes, agriculture, infrastructure, mining and energy sectors. GFL's manufacturing plant is located at GIDC, Chhatral, Kalol, Gandhinagar, Gujarat and manufactures aluminium rolled products (Sheet & Foil) with an available capacity of 12,600 TPA. The total plot area of this plant is 20,000 sq. meters. that includes a 9,000 sq. meters. built-up area within for sheds, office buildings, canteens and quarters. GFL also has 20,000 sq. meters. of land in Kutch area for a wind mill, and 1,00,000 sq. meters of land near Dist. Viramgam reserved for future expansions."
"During FY11-12, GFL set up a new state-of-the-art Foil Converting Plant exclusively for the pharmaceutical industry after which, GFL obtained the prestigious Drug Master File from USFDA. GFL provides converted foil (Pharma/Blister/Plain/Printed) to pharmaceutical clients from this facility. During Q1FY15, GFL has posted excellent results led by operational excellence. During Q1FY15 while sales advanced by 23.5% to Rs102.5 crore, net profit shot up by 64% to Rs3.6 crore. OPM & NPM stood at 11.6% and 3.5% against 13.3% and 2.7% respectively in Q1FY14.During FY14 sales advanced by 24.9% to Rs429.9 crore and net profit rose by 53.3% to Rs9.3 crore. EPS was Rs11.2. OPM & NPM stood at 11.7% and 2.1% against 12.2% and 1.7% respectively in FY13. To conserve the resources, keeping in mind the future expansion, no dividend has been declared. The Indian pharma industry is pegged at about $22.5 billion (Rs1,37,025 crore) and is expected to touch US $27 billion (Rs1,64, 430 crore) in 2016 and $55 billion (Rs3,34,950 crore) by 2020 at a CAGR of 15-17% indicating it’s a scorching growth pace. (McKensey). This augurs well for the future growth of GFL. The demand for disposable food packing /serving products is increasing and GFL foresees huge opportunity. GFL. It is also active in the process of strengthening its sales and distribution system across India to optimize available business opportunity. Today, GFL is enjoying the status of being one among the preferred suppliers to Pharma companies because of its orientation towards customer service and product quality. The barrier properties of foils produced by GFL are rated one among the best in the country due to technological innovation."
"GFL's Consumer Products Business (CPB) division has registered a substantial growth with its “NUTRIWRAP” brand both on kitchen foil as well as for institutional sales. Riding on the same, GFL has also forayed into the food services business and today the brand is poised to be one of the top brands in this segment. GFL through its 'sub-organisation' - CPB strategises to have its footprint as the leading company in India in the near future. At the CMP of Rs48, the share is trading at a P/E of 2.2x on FY15E and 1.7x on FY16E. We recommend BUY with a target price of Rs97 in the medium-to-long term at which, the share will trade at a P/E of 3.5x on FY16E,” says Sunidhi Securities research report.
source:http://www.moneycontrol.com/news/recommendations/buy-gujarat-foils-targetrs-97-sunidhi-securities_1158505.html
0 comments:
Post a Comment